airline industry
AEROSPACE MANUFACTURING INDUSTRY
GM 105
Professor Hatton
December 11, 2009
___
Report Completed By:
Sarah Gregory
Leslie Horton
Staci Miles
Lauren Rolson
Marcin Skubala
TABLE OF CONTENTS
INTRODUCTION 4
BACKGROUND 4
DOMINANT ECONOMIC INDICATORS 5
1. Market Size 5
2. Scope of Competitive Rivalry 6
3. Number of Companies in the Industry 7
4. Customers 8
5. Ease of Entry/Exit 8
6. Technology/Innovation 9
7. Product Characteristics 10
i. Government 10 ii. Commercial Aircraft 11
8. Scale Economies 11
A. Internal 11
B. External 12
9. Experience Curve Effects 12
10. Capacity Utilization 13
11. Industry Profitability 14
SIX FORCES OF COMPETITION 14
1. Threat of New Entrants 15
2. Bargaining Power of Suppliers 16
3. Bargaining Power of Buyers 16
4. Threat of Substitute Products/Services 17
5. Intensity of Rivalry among Competitors 18
6. Relative Power of other Stakeholders-Unions 18
COMPETITIVE POSITION OF MAJOR AEROSPACE COMPANIES 18
COMPETITOR ANALYSIS OF MAJOR AEROSPACE COMPANIES 20 Boeing Co. 20 Lockheed Martin Corporation 21 Northrop Grumman Corporation 23 Raytheon Co. 24 Other Manufacturers 25 Airbus 25 United Technologies 26
KEY SUCCESS FACTORS 26 Reducing Costs 26 Maintaining Access to Foreign Markets 27
INDUSTRY PROSPECTS AND OVERALL ATTRACTIVENESS 29 Factors Making the Industry Attractive 29 Factors Making the Industry Unattractive 31 Special Industry Problems and Issues 32 Profit Outlook 33 “Micro Jet” Airplanes 33
CONCLUSION 35
Works Cited 37
Appendix A. Aircraft Information Fixed-Wing Aircraft 40
INTRODUCTION
The accomplishments and advancements in the aerospace manufacturing industry over the last century since the Wright Brothers made their first flight on December 17, 1903 are astounding. The first flight covered a distance of one hundred twenty feet in twelve seconds. Today, airplanes allow us to travel across continents and are a crucial part of our military.
GM 105
Professor Hatton
December 11, 2009
___
Report Completed By:
Sarah Gregory
Leslie Horton
Staci Miles
Lauren Rolson
Marcin Skubala
TABLE OF CONTENTS
INTRODUCTION 4
BACKGROUND 4
DOMINANT ECONOMIC INDICATORS 5
1. Market Size 5
2. Scope of Competitive Rivalry 6
3. Number of Companies in the Industry 7
4. Customers 8
5. Ease of Entry/Exit 8
6. Technology/Innovation 9
7. Product Characteristics 10
i. Government 10 ii. Commercial Aircraft 11
8. Scale Economies 11
A. Internal 11
B. External 12
9. Experience Curve Effects 12
10. Capacity Utilization 13
11. Industry Profitability 14
SIX FORCES OF COMPETITION 14
1. Threat of New Entrants 15
2. Bargaining Power of Suppliers 16
3. Bargaining Power of Buyers 16
4. Threat of Substitute Products/Services 17
5. Intensity of Rivalry among Competitors 18
6. Relative Power of other Stakeholders-Unions 18
COMPETITIVE POSITION OF MAJOR AEROSPACE COMPANIES 18
COMPETITOR ANALYSIS OF MAJOR AEROSPACE COMPANIES 20 Boeing Co. 20 Lockheed Martin Corporation 21 Northrop Grumman Corporation 23 Raytheon Co. 24 Other Manufacturers 25 Airbus 25 United Technologies 26
KEY SUCCESS FACTORS 26 Reducing Costs 26 Maintaining Access to Foreign Markets 27
INDUSTRY PROSPECTS AND OVERALL ATTRACTIVENESS 29 Factors Making the Industry Attractive 29 Factors Making the Industry Unattractive 31 Special Industry Problems and Issues 32 Profit Outlook 33 “Micro Jet” Airplanes 33
CONCLUSION 35
Works Cited 37
Appendix A. Aircraft Information Fixed-Wing Aircraft 40
INTRODUCTION
The accomplishments and advancements in the aerospace manufacturing industry over the last century since the Wright Brothers made their first flight on December 17, 1903 are astounding. The first flight covered a distance of one hundred twenty feet in twelve seconds. Today, airplanes allow us to travel across continents and are a crucial part of our military.
Cited: “Aerospace Statistics.” Aerospace Industries Association. December 1, 2009. “Airbus.” Airbus. December 1, 2009. . "Boeing". The Boeing Company. December 1, 2009. . "Boeing: Long-term market -- Staying current." The Boeing Company. Web. Dec. 2009. . “Bureau of Labor Statistics.” United States Department of Labor. December 1, 2009. . “Fortune 500 2009.” CNNmoney.com December 1, 2009. . “Hoover.com” Hoover’s Inc. December 1, 2009. . Industry Review and Outlook. Rep. Air Transport Association, 11 Dec. 2009. Web. . “Lockheed Martin.” Lockheed Martin Corporation. December 1, 2009. . “Raytheon.” Raytheon Company. December 1, 2009. . "The Jetmakers - ENTRY INTO THE AEROSPACE INDUSTRY." General Atomic Homepage. Web. Dec. 2009. . “United Technologies.” United Technologies Corporation. December 1, 2009. . "Yahoo! Finance." Yahoo!. December 1, 2009. .